What is PLPD vs. Full coverage?
These are just two of the questions we get asked about coverage. The good thing is that consumers are getting to be more educated about insurance and learning what the terms mean. The more you understand about your car insurance the easier it is for you to make sure that you have the protection you need & want.
So, what do all of those coverages listed on your policy mean? Let us help:
1. Third party liability. This covers you if you cause bodily injury or death to any person or if you cause damage to someone else’s property. Most people carry at least $1 million.
2. Accident Benefits. This is a compulsory coverage in NB. These benefits are available to every insured who is injured in an automobile accident regardless of fault. They are claimed from your own auto insurance policy to eliminate long delays in receiving needed medical attention.
3. Direct Compensation. This covers damages to your vehicle if you are in an accident that is not your fault.
4. Collision. This fixes your vehicle if you are in an accident that is your fault. There is a deductible that applies to this coverage that you have to pay before coverage kicks in from the company. You are responsible for the deductible and the company pays the amount over and above that.
5. Comprehensive. This includes covered losses other than collision. It includes fire, theft, glass, vandalism and if you hit an animal, among other things. There is a deductible applied to this coverage.
6. All Perils. This is collision and comprehensive combined under one deductible but also includes theft by someone living in the house. This coverage used to be very common, but we do not see it as much now.
7. Uninsured Automobile. This allows some benefit for injury or death resulting from an accident caused by someone that does not carry insurance. This is limited to the provincial liability limits which, in New Brunswick, is currently $200,000.
8. Family Protection Endorsement (44). This provides coverage for you if you are in an accident with someone who is at fault and who carries a lower limit of liability than you do. It can provide coverage up to the limit of liability that you carry.
So, what does PLPD include?
When people ask for PLPD or liability only, it actually includes Third Party Liability, Accident Benefits, Direct Compensation, and uninsured automobile. This is what you need to legally drive on the road, so it comes as a package.
What is full coverage?
Full coverage would include all of the coverages listed above, either adding collision and comprehensive separately or combining it into all perils. Full coverage would also normally include Loss of Use (20). This allows you to get a rental vehicle if your vehicle is in being repaired due to an accident.
Brand new vehicles (first time owners) should also carry Waiver of Depreciation (43). This means that if you write off your vehicle in the first 24 months, you will not suffer the depreciation.
At Pearson Insurance…you will deal with real people.
These are people who will remember you. You will have the comfort of knowing that you will be able to deal with the same broker, so they know and understand your insurance requirements and concerns. We offer choice. We have a number of insurance companies that we can compare to make sure you are getting the best policy for the best price. Our Brokers are licensed, professionally trained, and offer expertise that allows them to provide top notch customer service. We are there to protect what matters to you and your family. We can leave you with the peace of mind knowing that you are dealing with a brokerage that has been in business since 1935!
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